ACCOUNTS - Final Accounts preparation
ACCOUNTS - Final Accounts preparation
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Registered number: SC174115
Charity number: SC027995
(A company limited by guarantee)
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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THE FIFE ENVIRONMENT TRUST
(A company limited by guarantee)
CONTENTS
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THE FIFE ENVIRONMENT TRUST
(A company limited by guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS
FOR THE YEAR ENDED 31 MARCH 2024
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THE FIFE ENVIRONMENT TRUST
(A company limited by guarantee)
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
The trustees are pleased to present their annual directors’ report together with the financial statements of the charity for the year ending 31 March 2024 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes. The financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
Since the company qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
Objectives and activities
a. Policies and objectives
Fife Environment Trust’s objects are governed by those set-in relation to the Landfill Tax Credit Scheme, but the Trustees have agreed to prioritise the following as set out in the Trusts Funding Strategy:
∙Object A: The reclamation, remediation, restoration or other operation on land to facilitate economic, social or environmental use.
∙Object B: Community based recycling, re-use and waste prevention projects.
∙Object C: To provide, maintain or improve a public park or other public amenity.
∙Object D: The conservation or promotion of biological diversity through the provision, conservation, restoration or enhancement of a natural habitat or the maintenance or recovery of a species in its natural habitat.
∙Object E: The maintenance, repair or restoration of a building, other structure or a site of archaeological interest which is a place of religious worship, or a site of historic or architectural or archaeological interest and is open to the public.
The charity's main activity in relation to its objectives is to approve grants to community projects meeting one or more of the eligible objectives mentioned in (A) to (E).
The principles of sustainability and sustainable development are at the centre of the Trust’s Funding Strategy. The main aim is to utilise contributions from Landfill Operators in order to maximise benefits for communities through environmental projects with a specific emphasis on:
∙Improving quality of life for communities by safeguarding and supporting improvements to the built and natural environment;
∙Supporting community led urban and rural regeneration schemes that encompass social inclusion and community capacity building.
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THE FIFE ENVIRONMENT TRUST
(A company limited by guarantee)
Achievements and performance
a. Main achievements of the company
At the start of the Scottish Landfill Communities Fund (SLCF) in April 2015, the Board approved the adoption of threshold levels from the previous UK scheme for both small and large grants. The current threshold levels are as follows -
Large Grants - Up to 75% funding available, maximum award of £50,000 (maximum award of £30,000 for play parks, skate parks and MUGA projects) Small Grants - Up to 90% funding available, maximum award of £10,000 These thresholds will remain until the trustees see it necessary to change them. During the year to March 2024, Fife Environment Trust (FET) has funded a wide range of projects with substantial community benefit. A proportion of funding awarded has been allocated to support outdoor activities including creation of a pump track in Dalgety Bay, refurbishing an existing unused MUGA in High Vallyefield and stabilising the bankings and improving paths and access at a Bowling Club in Freuchie all helping to promote physical activity. In addition, the Trust has supported the provision of a number of improved play facilities helping to promote more active and healthier lifestyles amongst youngsters within the communities these projects serve. A number of community facilities have also received funding for upgrade work including Craigrothie Village Hall, East Neuk Centre Trust and Pittenweem Library and Information Centre. By helping to safeguard these buildings, the Trust is helping to reduce isolation and promote community cohesion. The Trust continues to protect the environment through awards to eligible projects such as restorative interventions on Balcaskie Estate, in the upper reaches of the Dreel Burn and creating a community growing space and test space on redundant land in Crosshill. The Trust also continues to protect historical buildings through awards to eligible projects such as redeveloping St Andrews Heritage Museum and Garden.
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THE FIFE ENVIRONMENT TRUST
(A company limited by guarantee)
Financial review
a. Going concern
During the year the Trust received £566,417 (2023: £721,912) in contributions from Fife Council. The trustees would like to thank this organisation for their contributions.
During the year the Trust awarded 27 new applications for funding for Large Grants to the value of £967,073 (2023: 18 new applications totalling £687,796). The Trust awarded 4 new applications for funding under the Small Grants Scheme approving awards of £40,000 (2023: 8 new applications totalling £62,384). The Trust paid out awards to the value of £904,083 during the year and was committed to paying out £1,588,044. At the balance sheet date the trust held restricted reserves of £80,090 (2023: £79,028) and unrestricted reserves of £509,030 (2023: £923,868). The Trustees are aware that funding is a major risk for the charity. If the Council decide not to contribute the 10% element, the landfill company would have to pay the landfill tax in full to HMRC. Since there are no other parties making a funding contribution the going concern of the charity would in these circumstances be under risk. In addition, the Trustees are aware that Scottish Government is taking steps towards a Zero Waste Society and as a consequence, the level of qualifying contributions in the future will dramatically reduce as will the 10% Third Party Contribution currently being received from Fife Council. The Trustees' have monies to cover the present funding commitments which are included as creditors in the accounts. In addition, the Trustees consider they would need £150,000 operating costs to cover the charity winding up over a period of one year. The unrestricted reserves of £509,030 are deemed reasonable to allow the charity to manage the impact of future funding constraints following the impending landfill ban which will take effect on 1st January 2025. However, given the expectation that funding to the charity will cease over the next two years, the charity cannot be considered a going concern and these financial statements have been prepared on a basis other than that of a going concern. No adjustments to the results for the year were necessary as a consequence of this.
Structure, governance and management
a. Constitution
The trust is a company limited by guarantee, governed by its Memorandum and Articles of Association. The company must have a minimum of 3 directors and a maximum of 12. Fife Council can have up to 2 directors on the board. Fife Council, however, may not hold the majority of directors appointed.
Amounts granted to applicants may fall into two categories. Small projects, where the claim is less than £10,000, can be approved by two delegated Directors. Claims in excess of £10,000 will be decided by all directors on a majority basis at a Board meeting. These are the new thresholds which came into effect for applications received after 1st January 2012.
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THE FIFE ENVIRONMENT TRUST
(A company limited by guarantee)
Structure, governance and management (continued)
b. Methods of appointment or election of Trustees
New directors may either be approached by existing directors and invited to join the Board or may be nominated by the party they represent in the case of Fife Council.
c. Organisational structure and decision-making policies
d. Financial risk management
The Trustees have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
Funds paid to the Trust from the Scottish Landfill Communities Fund are monitored and the Trustees have implemented a risk register in relation to this to ensure compliance.
e. Plans for future periods
The Trust, in future, will continue to award grants to those projects which fall under the scope of the trust's objectives. However, in light of the impending landfill ban which will take effect on 1st January 2025, the Trust has now reached the point of considering an Exit Strategy.
f. Policies adopted for the induction and training of trustees
Upon being appointed as a new director the Director will be supplied with an induction and training pack containing information and history on the Trust.
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THE FIFE ENVIRONMENT TRUST
(A company limited by guarantee)
Structure, governance and management (continued)
Statement of Trustees' responsibilities
Disclosure of information to auditors
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
∙so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are unaware, and
∙that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information.
Auditors
The auditors, Sumer Auditco Limited, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.
Approved by order of the members of the board of Trustees and signed on their behalf by:
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THE FIFE ENVIRONMENT TRUST
(A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE FIFE ENVIRONMENT TRUST
We have audited the financial statements of The Fife Environment Trust (the 'charitable company') for the year ended
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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THE FIFE ENVIRONMENT TRUST
(A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE FIFE ENVIRONMENT TRUST (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Trustees' report which includes the directors' report and strategic report prepared for the purposes of the company law for the financial year for which the financial statements are prepared is consistent with the financial statements..
∙the Trustees' report has been prepared in accordance with applicable legal requirements.
In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report.
We have nothing to report in respect of the following matters in relation to which Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:
∙adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
∙the financial statements are not in agreement with the accounting records and returns; or
∙certain disclosures of Trustees' remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit; or
∙the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' report and from the requirement to prepare a Strategic report.
As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
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THE FIFE ENVIRONMENT TRUST
(A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE FIFE ENVIRONMENT TRUST (CONTINUED)
We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We gained an understanding of the legal and regulatory framework applicable to the charitable company and the industry in which it operates, and considered the risk of acts by the charitable company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Charities and Trustee Investment (Scotland) Act 2005, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
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THE FIFE ENVIRONMENT TRUST
(A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE FIFE ENVIRONMENT TRUST (CONTINUED)
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company's trustees, as a body, in accordance with regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members and Trustees those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company, its members, as a body, and its trustees, as a body for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditors
Pentland House
Saltire Centre
Glenrothes
Fife
KY6 2AH
Sumer Auditco Limited are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.
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THE FIFE ENVIRONMENT TRUST
(A company limited by guarantee)
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT)
FOR THE YEAR ENDED 31 MARCH 2024
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THE FIFE ENVIRONMENT TRUST
(A company limited by guarantee)
REGISTERED NUMBER: SC174115
BALANCE SHEET
AS AT 31 MARCH 2024
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
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THE FIFE ENVIRONMENT TRUST
(A company limited by guarantee)
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
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THE FIFE ENVIRONMENT TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
1.Accounting policies
The Company is a Company limited by guarantee. The members of the Company are the Trustees named on page 1.
All income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
The trustees confirm they have an expectation that funding to the charity will cease over the next two years and, consequently, the charity cannot be considered a going concern. These financial statements have been prepared on a basis other than that of a going concern. No adjustments to the results for the year were necessary as a consequence of this.
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company; this is normally upon notification of the interest paid by the Bank.
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THE FIFE ENVIRONMENT TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
1.Accounting policies (continued)
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THE FIFE ENVIRONMENT TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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THE FIFE ENVIRONMENT TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
All grant recipients were institutions. See note 20 for further details.
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THE FIFE ENVIRONMENT TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
The company has no employees other than the Trustees. No Trustees' received remuneration (2023 - £NIL).
The average number of persons employed by the company during the year was 0 (2023- 0). No employee received remuneration amounting to more than £60,000 in either year.
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THE FIFE ENVIRONMENT TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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THE FIFE ENVIRONMENT TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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THE FIFE ENVIRONMENT TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Fife Council as a landfill site operator made contributions of £566,417 (2023 - £721,912) to the Trust during the year. At the balance sheet date £173,848 (2023 - £316,414) was due by Fife Council to the Trust.
The Trust has a planning consultancy contract with Fife Council who undertake to develop, approve and monitor projects funded by the Trust. During the year £78,988 (2023 - £71,997) was paid by the Trust under the terms of the contract. There were no transactions with the Trustees during the year (2023 - £Nil).
No tax is payable by the Trust as its charitable status gives it exemption from corporation tax.
The company is unable to reclaim Value Added Tax on the goods and services purchased and accordingly any such irrecoverable input tax is included in the relevant expenditure.
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THE FIFE ENVIRONMENT TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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THE FIFE ENVIRONMENT TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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THE FIFE ENVIRONMENT TRUST
(A company limited by guarantee)
INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
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